Dunkin’ Brands will close 800 Dunkin’ coffee locations in the US permanently after workers stop dropping in for their morning drink.
DUNKIN’, formerly known as Dunkin’ Donuts, said it expects some 800 locations including 450 limited-menu Speedway locations to permanently close in 2020. The locations represent approximately 8 per cent of the Dunkin’ total restaurant footprint.
Meantime, Dunkin’ said it will continue to keep any long-term financial guidance under wraps. The company announced however that its board agreed to reinstate the company’s quarterly dividend. Dunkin’ also said it has stopped reopening dining rooms that were closed because of Covid-19 safety precautions due to the recent rise in new cases across the US.
Dunkin’ saw same-store sales fall by 18.7 per cent in the most recent quarter. These excluded locations that were temporarily closed by the coronavirus pandemic. The company said sales have been improving weekly, reaching single-digit declines in the week ending July 25, and offset some losses by customers placing more expensive bulk orders amid Covid-19 restrictions.